Price is the primary tool of technical analysis because it reflects every factor affecting the value of a market. However, price doesn’t produce just trend lines and basic chart patterns. Analysts have expanded their research far beyond those basic elements to develop a number of technical indicators that provide more insight into price action than what you see on the surface. You may be able to see that a market is “extended” (overbought or oversold) just by looking at a bar chart, but an indicator can put a number to it and confirm your thinking.
Archive for July, 2006
Support at 1.2307 is broken below, USDCHF is in down trend. Further fall below 1.2182 (the day low of July 7) is possible in next several days. key resistance is now at 1.2422, as long as this key resistance holds, down trend will continue. (more…)
Leverage financed with credit, such as that purchased on a margin account is very common in Forex. A margined account is a leverageable account in which Forex can be purchased for a combination of cash or collateral depending what your brokers will accept.
Traders have debated the merits of “technical analysis” versus “fundamental analysis” for years. In reality, most traders probably do not make such a rigid distinction between these two approaches to market analysis and use some of both in making their decisions.
Key resistance at 1.2706 is broken above, EURUSD has bottomed at 1.2457 on daily chart. Further rise above 1.2978 (the day high of June 5, 2006) is possible in next several weeks. For long term analysis, EURUSD is bottoming on weekly chart, key resistance is at 1.2978, a break above this level may signal the long term bullish movement, and this bullish movement would last several months.
History of the Forex Market
The Foreign Exchange market, also referred to as the “Forex” or “FX” market is the largest financial market in the world, with a daily average turnover of well over US$1 trillion — 30 times larger than the combined volume of all U.S. equity markets.
Money management is one of the most important elements that show difference between winners and losers. It was proved that if 100 traders start trading using a system with 60% winning odds, only 5 traders will be in profit at the end of the year. In spite of the 60% winning odds 95% of traders will lose because of their poor money management. Money management is the most significant part of any trading system. Most of traders don’t understand how important it is.
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